The founder of decentralized finance (DeFi) protocol Aave announced that the platform generated $6 million in revenue during Monday’s crypto market sell-off. The market plunge, influenced by the Bank of Japan’s recent interest rate hike and Friday’s U.S. jobs report, affected DeFi as well. Over the past 24 hours, Ether (ETH) has fallen by more than 20%, while Aave (AAVE) has lost 23.7% of its market cap.
According to Parsec Finance, the sell-off resulted in over $1 billion being liquidated across crypto derivatives markets, with an additional $350 million liquidated on DeFi protocols. “Aave Protocol withstood market stress across 14 active markets on various L1s and L2s, securing $21B worth of value,” Aave’s Stani Kulechov wrote on X. “Aave Treasury was rewarded with $6M in revenue overnight from decentralized liquidations for keeping the markets safe.”
The drop in crypto prices led to multiple liquidations on Aave, including a $7.4 million wrapped ether (WETH) position, which generated $802,000 in revenue for the company, as per on-chain data. The total value locked (TVL) on DeFi protocols has now decreased to $71 billion, down from $100 billion at the beginning of the month, according to DefiLlama data.
